Analysis of the Multinational Enterprise. Douglas Holding

Bounded reliability issues
• Focus on good locations
• Risks of host countries
As far as Douglas locates their stores only in city centres and big shopping centres in order to be more reachable for bigger number of customers, that makes them to be remoted from the inhabitants of smaller cities around the countries.
Another issue may be all the risks host countries can create. In nowadays situation one of the main risks could be geopolitical tension what can negatively affect the demand for products, including current tensions between Western countries and Russia, for example, if they further deteriorate.

Cultural distance
Douglas entered French market by acquiring already excisting brand in there. The two companies- Douglas and Nocibe- both are selective perfumery chains. Customers in France from this deal benefited nation-wide and more attractive ranges of products and services, including a large variety of exclusive fragrances, cosmetic products and beautician boutiques Douglas already was working with. But in order to stay close with their customers, Douglas descided that the best way is to keep the name of Nocibe soo French customers could be able to identify themselves and stay faithful to the brand.

Geographical distance
In the context of the European Union, the cooperation between the two countries is immense and intimate. Eventhough France has been eurosceptical in some times, especially under President Charles de Gaulle, Franco-German agreements and cooperations have always been key to furthering the ideals of European integration. In recent times, France and Germany are among the most enthusiastic countries of the further integration of the EU. They are sometimes described as the "twin engine" or "core countries" pushing for moves.
Physical distance from Gemany to France measures in 817km and it takes less than an hour to travel by plane from one to another.
…